How US Presidential Elections Matter For Crypto Investors?

The US Presidential elections are going to be a decisive moment for not just US politics but also for crypto investors. The general perception among people is that the Republican party is more favorable for cryptocurrencies. However, in recent times, the Democrat party has also expressed favorable views on cryptos. Donald Trump made headlines a few months back by accepting donations in cryptocurrencies in his campaigns. Vice President Kamala Harris in September this year expressed support for the expansion of the crypto industry in the US.

US Presidential Elections and Cryptocurrency

The two US presidential election candidates have now expressed positive and encouraging views about cryptocurrency. If the winning candidate allows the cryptocurrency industry to grow on its own with minimal state interference, then it can be a blessing for the sector. Conversely, if the state intervenes and has a supervisory approach then it will not augur well for the sector. 

What Cryptos Mean For American Life

Cryptocurrencies are an integral part of American life. The citizens are showing widespread support and enthusiasm. This is the reason behind the growing use of cryptos in US elections. These indicators also signal the beginning of a new era where cryptos are no longer a “fringe phenomenon”. In a survey taken a few months ago, most crypto voters back transparent rules and regulations concerning digital assets. 

Kamala Harris on Cryptocurrencies

Kamala Harris has been supportive of cryptocurrencies and has released a policy document regarding that. She has publicly said that she will encourage innovative technologies, artificial intelligence, and digital assets. By mentioning digital assets, she meant both stablecoins and cryptocurrencies. She will guarantee a safer business environment for digital assets. 

However, the track record of the Biden administration regarding cryptocurrencies has not been favorable. The interference of state institutions like the SEC on cryptocurrencies and the constant demand for more regulations has antagonized a section of American crypto enthusiasts. Therefore, experts and analysts opine that Democrats have softened their stance and this should be perceived as an “olive branch”. 

Donald Trump on Cryptocurrencies

Donald Trump compared to Harris has been more vocal in his support for cryptocurrencies. In July this year, he accepted crypto donations as a means of political campaign. He also gave a famous speech in which he wanted the US to become a Bitcoin superpower. This can have a positive impact on Bitcoins and a host of other ICO events such as Grey HAT. He is also bitterly critical of the SEC and wants to form a crypto advisory council. Overall, Trump wants people to actively write the rules of the crypto industry and prevent government interference. 

During his campaigns, Trump has also talked of a “national Bitcoin stockpile”. He wants to appoint a Bitcoin and a crypto Presidential Advisory Council. In his criticism, he also accused the current Biden dispensation of being hostile to cryptocurrencies. It is because of his statements, that crypto enthusiasts are favoring Trump over Harris. They also believe that the mainstream media is painting a negative image of cryptocurrencies and that will stop if he is elected. 

Bottom Line

The US elections could well turn out to be a decisive moment in the brief history of the cryptocurrency sector. Crypto investors are expecting more positive outcomes from Donald Trump owing to his open endorsements. However, the attitude of the Democratic Party under Kamala Harris has also undergone a significant change, despite the prevailing skepticism. It is worth noting that state policies matter a lot and if regulations in the future become favorable, then it could lead to widespread expansion of the cryptocurrencies, crypto exchanges, ICO projects, NFT marketplace and others. Thus, the policies could well make them the most viable alternative to fiat currency. Therefore, the entire sector involving decentralized finance (DeFi) and digital currency enthusiasts are eagerly awaiting the election results.